South Africa weighs further sugar import controls after raising import duty
South Africa is considering further restrictions on sugar imports after raising import duties to R6.97/kg in August. Imports rose to 94,984 tonnes in January–May 2026, while the government is also exploring sugarcane diversification into ethanol, sustainable aviation fuel, bioplastics and electricity generation.
South Africa is considering additional restrictions on sugar imports as the government looks to stabilise the domestic sugar industry following an increase in the import duty from R4.83 to R6.97 per kilogram in August. While the higher duty is already in force, the nature and timing of any further import controls have not yet been confirmed, Townpress reported.
The country imported 94,984 tonnes of sugar between January and May 2026, compared with 55,213 tonnes during the corresponding period last year, according to figures from the South African Revenue Service. The South African Sugar Association estimates that imported sugar competition cost the domestic industry R1.6 billion during the 2025/26 season.
The tariff review saw growers and beverage manufacturers put forward contrasting demands. The South African Sugar Association urged the International Trade Administration Commission to increase the reference price used to calculate the import duty from US$680 to US$905 per tonne. In contrast, the Beverage Association of South Africa sought a reduction. The government ultimately fixed the reference price at US$785 per tonne, offering greater protection to domestic mills while increasing the cost of imported sugar for manufacturers.
The duty increase came at a time when domestic mills were facing production disruptions. A strike halted cane crushing for several weeks during the peak season, prompting the US Department of Agriculture’s Pretoria office to lower its estimate of South Africa’s sugar production. The office also reduced its import forecast following the tariff increase. Food and beverage manufacturers will therefore be affected by both the higher cost of imported sugar and the quantity that domestic mills can supply.
The government is also exploring alternative markets for sugarcane as part of its longer-term strategy for the sector. Speaking ahead of the growers’ dialogue held in Mzinti on October 30, Trade, Industry and Competition Deputy Minister Zuko Godlimpi identified fuel-blending ethanol, sustainable aviation fuel, bioplastics and electricity generation as potential avenues for diversifying the use of sugarcane.
However, these opportunities remain under consideration. In the near term, growers continue to face concerns over domestic mill capacity and competition from imported sugar.
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Source : ChiniMandi
